GMAC Halts Foreclosures in 23 States

Its all about residual income streams. Get borrowers on the hook with security interest to the property, package and flip $10M bundles.

These mortgages made many people wealthy but once the defaults started and now the security interest is suspect... A whole world of hurt is inevitable. Whose going to buy this junk?

Many people bought and flipped houses rolling their equity keeping their note small.

BTW: I believe SC is a non recourse state... The property is all the bank would be entitled to provided the paperwork is in order.

Quote from KINGOFSHORTS:

What no one seems to understand is it is better for the economy if someone earning 50K can buy an 80K home and only service a small mortgage payment and not need to borrow money to buy things.

Someone thought it was a smarter idea for someone earning 50K having to borrow half a million dollars to buy a home and then pledge the home as collateral so they can borrow and buy things.
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